Starbucks — the world’s largest coffee-shop chain — has reported third-quarter revenue that missed analysts’ estimates after same-store sales growth slowed in the Americas, its biggest region.
Sales rose 7.3% to $5.24bn (€4.75bn) in the quarter ended June 26, the Seattle-based company said. That trailed analysts’ $5.34bn average estimate.
Same-store sales climbed 4% in the Americas, decelerating from a 7% increase in the prior quarter.
While Starbucks has been adding locations and advertising new items, the chain is grappling with US consumers who have been reluctant to spend.
The University of Michigan’s preliminary sentiment index fell to a three-month low in July as the UK’s vote to leave the EU flustered higher-income earners.
While customers responded well to the loyalty programme switch, “we had two major marketing messages” at the same time, chief operating officer Kevin Johnson said. The shares, which were little changed yesterday, have declined almost 4% this year.
The company reiterated its forecast for annual profit, excluding certain items. Cold-brew coffee, iced teas, and breakfast sandwiches are helping pull in more customers, Mr Johnson said.
In Starbucks’ Europe, Middle East, and Africa division, same-store sales fell 1%. The chain has about 870 UK locations.
“There’s a higher level of uncertainty from the consumer, not only in Europe, but probably it’s a global phenomenon,” Mr Johnson said.
Comparable-store sales rose 3% in China and Asia Pacific, where Starbucks has about 6,100 locations and is rapidly expanding.
© Irish Examiner Ltd. All rights reserved